Credit or refund for nontaxable use of taxed Other Fuels may be allowable to an ultimate purchaser. While tax is generally imposed on delivery, Other Fuels are taxed prior to delivery in the case of certain bulk sales described in chapter 1. The following are the nontaxable uses of Other Fuels for which a credit or refund may be allowable to the ultimate purchaser.

On a farm for farming purposes.

Off-highway business use.

In a boat engaged in commercial fishing.

In certain intercity and local buses.

In a school bus.

In a qualified local bus.

Exclusive use by a qualified blood collector organization.

Exclusive use by a nonprofit educational organization.

Exclusive use by a state, political subdivision of a state, or the District of Columbia.

In an aircraft or vehicle owned by an aircraft museum.

Use in any boat operated by the United States for its exclusive use or any vessel of war of any foreign nation.